Swedish public pension (allmän pension)
This information is for EU/EEA citizens only
In Sweden, a public pension is to a high degree funded by employer-paid social security contributions. Each month, your employer must pay 31.42 percent (2018) of your gross pay in employers’ contribution (for young people aged 18-26 and older than 65, the percentage is less). 10.21 percent of these contributions go to the payment of your pension. Of the total, 18.5 percent is paid to your future pension - the rest is made by your own deposit through your tax return -however a deposit which is deductible.
The Swedish public pension structure
The Swedish public pension is made up of different elements, some of which are linked to your income.
An income pension represents a substantial part of the Swedish state pension. 16 of the 18.5% paid in goes to your income pension.
A premium pension is like an income pension, financed by your employer and you pay social security contributions in addition to your salary. 2.5 of the 18.5% goes to the premium pension. Unlike an income pension, you have the opportunity to decide how the money should be placed.
A guarantee pension is a state-funded pension to ensure that people who have had very little or no income have an income when the person retires. To be entitled to a full guarantee pension, you must have lived in Sweden for 40 years. The guarantee pension is therefore reduced if you have an income pension, foreign pensions, etc.